Mortgage Refinance Calculator — Compare Current vs New Mortgage
Calculate if refinancing your mortgage saves money. Compare your current payment with a new loan and see the break-even point and total savings.
Mortgage refinancing replaces your current mortgage with a new one at a potentially lower interest rate or different term. A good rule of thumb is refinancing makes sense when you can reduce your rate by at least 0.50-0.75% and plan to stay in the home long enough to recover closing costs (typically $3000-$10000). With rates fluctuating understanding your exact break-even point prevents costly refinancing mistakes.
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Key Information
| Parameter | Details |
|---|---|
| Typical Closing Costs | $3000 - $10000 (2-5% of loan) |
| Break-Even Rule | Monthly savings × months = closing costs |
| Rate Reduction Sweet Spot | 0.50% - 0.75% minimum |
| No-Cost Refinance | Higher rate but zero closing costs |
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Use Calculator NowFrequently Asked Questions
When does refinancing make sense?
Refinancing makes financial sense when: monthly savings × months remaining in home > closing costs. If refinancing saves $200/month and costs $6000 your break-even is 30 months. If you plan to stay 5+ years you save $200 × 60 = $12000 minus $6000 costs = $6000 net savings. Do not refinance if you plan to move within 2-3 years.
Can I refinance with no closing costs?
Yes no-cost refinancing exists but is not truly free. The lender rolls closing costs into a slightly higher interest rate (typically 0.125-0.25% higher). This eliminates upfront costs but reduces monthly savings. No-cost refinancing makes sense if you might sell or refinance again within 3-5 years since you never need to recoup closing costs.
Should I refinance to a shorter term?
Refinancing from 30-year to 15-year increases monthly payments but dramatically reduces total interest. On a $300000 loan: 30-year at 7% = $1996/month total interest $418560. 15-year at 6.5% = $2613/month total interest $170340. You pay $617 more monthly but save $248220 in interest. Only do this if the higher payment is comfortably affordable.
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Last updated: March 2026